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Nera Q3 profit drops 43% as sales fall in all key segments

NERA Telecommunications' third-quarter net profit fell 43.3 per cent as sales fell across all key business segments, the supplier of telecommunications and point-of-sales equipment announced on Thursday after the market closed.

Net profit dropped to S$2 million, or 0.55 Singapore cent per share, for the three months ended September. For the first nine months of the year, net profit fell 22.4 per cent to S$9 million, or 2.49 Singapore cents per share.

Revenue fell 20.2 per cent to S$39.6 million during the quarter.

Sales from the telecommunications business decreased by 15.9 per cent to S$13.1 million on a slowdown in the Middle East and Africa.

The network infrastructure business saw a 30.3 per cent drop in turnover during the quarter, to S$15 million, due to lower sales of network equipment to the service provider market. Payment solutions revenue declined by 8.3 per cent to S$11.5 million on lower sales of point-of-sale terminals.

Nera said it secured about S$164.7 million of order in-take in the first nine months of 2015, down 3.3 per cent from the S$170.5 captured in the year-ago period.